BASF Aktiengesellschaft announced today that it has agreed to
acquire the crop protection business of American Home Products
Corporation (AHP) of Madison, New Jersey, for about USD 3.8 billion.
Both companies signed a contract on March 21.

Through this acquisition, BASF will more than double its annual
crop protection sales, which were about USD 1.9 billion in 1999, and
will move up to the top ranks of the world's leading crop protection
manufacturers.

The transaction, which still requires approval from relevant
governmental antitrust authorities, is scheduled to be completed by
July 1, 2000. The BASF Supervisory Board has already approved the
transaction.

Through the combination of these activities, BASF intends to
become even more competitive in crop protection due to these decisive
success factors:

- BASF will acquire a leading role in major agricultural markets.
BASF is expanding its presence particularly in the important
agricultural markets of North and South America as well as
strengthening its established position in Europe.

- BASF will offer a strong and broad product portfolio for all
attractive crops as well as an established and proven line of
insecticides.

- BASF will have a combined pipeline under development with 15
active ingredients expected to be launched by 2006 with a combined
peak annual sales potential of about USD 2 billion.

The combined business would have had pro forma 1999 sales of USD
3.6 billion and income from operations before one-time restructuring
items of USD 450 million.

Approximately USD 250 million in annual synergy effects are
expected to be generated by the transaction, with approximately half
of the benefits to be achieved in the first full year after the
acquisition. BASF expects the acquisition to make a positive
contribution to earnings from 2001. Additional synergies are expected
from various markets.